ArcelorMittal looking for partners, subsidies for cleaner steelmaking in Germany

ArcelorMittal is looking for partners and public funding to curb carbon emissions from steelmaking in its German operations where alternative technology plans are far advanced, the European head of the world’s biggest steel producer said.

Europe’s steelmakers are under pressure to cut carbon emissions while maintaining profitability in a market where there is fierce competition, mainly from China, while pollution permit costs are spiralling higher.

“We are looking for partners from the energy sector to deliver renewable power,” Geert Van Poelvoorde, the new chief executive of ArcelorMittal Europe told Reuters in an interview.

“We want to replace carbon and increase the use of scrap metal.”

The company estimates it would cost between 1 and 1.5 billion euros ($1.18-1.77 billion) to transform its Bremen and Eisenhuettenstadt (EKO) plants, Van Poelvoorde said.

ArcelorMittal’s so-called “smart carbon” process would use carbon recycled from bioenergy, green electricity, and carbon capture and usage.

The company would close a blast furnace in each of the two plants and build electric arc furnaces for scrap smelting.